apple - Assignment Essays

question

A local restaurant offers "all you can eat" bbq special. you pay $9, and then you can eat as many servings as you desire at no additional cost. You should stop eating when:

answer

Your marginal utility (or value) derived from eating another serving is zero

question

According to the "Income effect", when price of automobiles rises, people buy fewer automobiles because:

answer

The purchasing power of their incomes is reduced

question

The demand for "chocolate chip cookie dough" ice cream is likely quite price elastic because:

answer

other flavors of ice cream are good substitutes for this particular flavor

question

If demand price elasticity measures 2.0, this implies that consumers will:

answer

Buy 2 percent more of the product in response to a 1 percent drop in price

question

If a 10 percent rise in airfares leads to a 5 percent increase in total expenditures on air travel, the price elasticity of demand for air travel in this range must be:

answer

relatively price inelastic

question

When a good is more generally defined (like a starbucks carmel machiatto instead of a "coffee"

answer

it will have fewer substitutes, so demand will be less elastic

question

If a demand curve for a good is completely horizontal, it is considered to be:

answer

perfectly price elastic

question

If the demand for a product decreases after an increase in income, it can be concluded that the :

answer

product is an inferior good

question

In the short run, the firm's Average Fixed Costs (AFC)

answer

always decrease if output is increased

question

If the CRO of a large corporation uses the corporate jet to fly friends to the Super Bowl next weekend at company expense, this is most clearly an example of

answer

the principal-agent problem.

question

Which of the following is a typical difference between corporations and partnerships?

answer

corporate owners have limited liability; owners of partnerships have unlimited liability

question

Hostile Takeover bids (and the potential of such bids)

answer

increase the incentive of corporate managers to performs efficiently, and earn a profit

question

Which of the following items is most likely to be an implicit cost of production?

answer

the interest income foregone on the equity capital invested by owners

question

Assume a local doughnut shop produces about 600 dozen doughnuts daily. If the price of one of their resources (like flour) increases by 20 percent, then:

answer

Their marginal cost, average variable cost, and average total cost curves will all shift up

question

which one of the following decisions most clearly reflect a lack of understanding of the concept of sunk costs?

answer

you study eight hours for a final exam in a course, even though there is no way now that you can pass because you did not take the mid-term exam earlier in the quarter

question

If the interest rate were 10 percent, how much would people be willing to pay for a preferred stock that was expected to pay a $1 yearly dividend continuously in the future

answer

you 10.00

question

As a general rule. common stockholders realize the majority of their investment return from:

answer

capital gains

question

At last count, what percentage of U.S. households own stock, either directly or through an equity mutual fund?

answer

about 50%

question

The market for new issues of both stocks and bonds is called the:

answer

primary market

question

Investors are often willing to pay posititive prices for shares of firms that have never earned a postivie accounting profit because the investors

answer

expect the firms to have postitive net earnings in the future

question

during the last two centuries, after adjustment for inflation,

answer

corporate stocks have yielded a nominal return of approximately 11 percent annually, compared to a nominal return of about 7 percent for bonds

question

In price-taker markets, individual firms have no control over the market price. Therefore, the firm's marginal revenue curve is

answer

constant at the market price of the product

question

which of the hollowing is a primary difference between price searchers and price takers?

answer

price searchers have to cut their price to sell additional output, but price takers do not

question

If marginal revenue is less than the marginal cost, a profit- maximizing price-taker firm should

answer

reduce its output

question

in a "perfectly competitive" market

answer

many selling firms are offering a product that is essentially identical

question

As the period of time firms can expand output is lengthened, elasticity of the supply curve will

answer

increase

question

Suppose a typical firm in a particular industry is making posititive economics profits. these economic profits

answer

signal owners of factors of production to move resources into this industry

1 of 27

question

A local restaurant offers "all you can eat" bbq special. you pay $9, and then you can eat as many servings as you desire at no additional cost. You should stop eating when:

answer

Your marginal utility (or value) derived from eating another serving is zero

question

According to the "Income effect", when price of automobiles rises, people buy fewer automobiles because:

answer

The purchasing power of their incomes is reduced

question

The demand for "chocolate chip cookie dough" ice cream is likely quite price elastic because:

answer

other flavors of ice cream are good substitutes for this particular flavor

question

If demand price elasticity measures 2.0, this implies that consumers will:

answer

Buy 2 percent more of the product in response to a 1 percent drop in price

question

If a 10 percent rise in airfares leads to a 5 percent increase in total expenditures on air travel, the price elasticity of demand for air travel in this range must be:

answer

relatively price inelastic

question

When a good is more generally defined (like a starbucks carmel machiatto instead of a "coffee"

answer

it will have fewer substitutes, so demand will be less elastic

question

If a demand curve for a good is completely horizontal, it is considered to be:

answer

perfectly price elastic

question

If the demand for a product decreases after an increase in income, it can be concluded that the :

answer

product is an inferior good

question

In the short run, the firm's Average Fixed Costs (AFC)

answer

always decrease if output is increased

question

If the CRO of a large corporation uses the corporate jet to fly friends to the Super Bowl next weekend at company expense, this is most clearly an example of

answer

the principal-agent problem.

question

Which of the following is a typical difference between corporations and partnerships?

answer

corporate owners have limited liability; owners of partnerships have unlimited liability

question

Hostile Takeover bids (and the potential of such bids)

answer

increase the incentive of corporate managers to performs efficiently, and earn a profit

question

Which of the following items is most likely to be an implicit cost of production?

answer

the interest income foregone on the equity capital invested by owners

question

Assume a local doughnut shop produces about 600 dozen doughnuts daily. If the price of one of their resources (like flour) increases by 20 percent, then:

answer

Their marginal cost, average variable cost, and average total cost curves will all shift up

question

which one of the following decisions most clearly reflect a lack of understanding of the concept of sunk costs?

answer

you study eight hours for a final exam in a course, even though there is no way now that you can pass because you did not take the mid-term exam earlier in the quarter

question

If the interest rate were 10 percent, how much would people be willing to pay for a preferred stock that was expected to pay a $1 yearly dividend continuously in the future

answer

you 10.00

question

As a general rule. common stockholders realize the majority of their investment return from:

answer

capital gains

question

At last count, what percentage of U.S. households own stock, either directly or through an equity mutual fund?

answer

about 50%

question

The market for new issues of both stocks and bonds is called the:

answer

primary market

question

Investors are often willing to pay posititive prices for shares of firms that have never earned a postivie accounting profit because the investors

answer

expect the firms to have postitive net earnings in the future

question

during the last two centuries, after adjustment for inflation,

answer

corporate stocks have yielded a nominal return of approximately 11 percent annually, compared to a nominal return of about 7 percent for bonds

question

In price-taker markets, individual firms have no control over the market price. Therefore, the firm's marginal revenue curve is

answer

constant at the market price of the product

question

which of the hollowing is a primary difference between price searchers and price takers?

answer

price searchers have to cut their price to sell additional output, but price takers do not

question

If marginal revenue is less than the marginal cost, a profit- maximizing price-taker firm should

answer

reduce its output

question

in a "perfectly competitive" market

answer

many selling firms are offering a product that is essentially identical

question

As the period of time firms can expand output is lengthened, elasticity of the supply curve will

answer

increase

question

Suppose a typical firm in a particular industry is making posititive economics profits. these economic profits

answer

signal owners of factors of production to move resources into this industry

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